Who bears the costs of the arbitration proceeding for a Del Taco franchise dispute?

According to Del Taco's 2025 Franchise Disclosure Document, each party involved in an arbitration proceeding will bear its share of the costs. This means that the franchisee and Del Taco will each be responsible for covering their portion of the expenses associated with the arbitration. However, the prevailing party in the arbitration has the right to be awarded reasonable attorneys' fees and costs incurred after the filing of the demand for arbitration.

This arrangement is fairly standard in franchise agreements, as it ensures that both parties are responsible for managing their expenses during the dispute resolution process. It also incentivizes parties to present a strong case, as the prevailing party can recover attorney's fees and costs. This can help to level the playing field and prevent one party from being unfairly burdened by the costs of arbitration.

It's important to note that while each party initially bears its share of the arbitration costs, the prevailing party can ultimately recover attorney's fees and costs. This could significantly impact the overall financial burden of the arbitration, depending on the outcome. A prospective Del Taco franchisee should carefully consider these factors when evaluating the potential costs of resolving disputes through arbitration.